INVENTORY AUDIT REPORT

WIKAS PRINTING AND CARRIERS PVT. LTD.

PART–A : EXECUTIVE SUMMARY

A. SURPRISE VERIFICATION OF INVENTORY :

Initially on 22nd February 2023 – we requested the WIP Incharge for surprise verification
of inventory. He informed us that he was not ready with the same.

Some of Inventory Details not provided by the WIP Incharge at the time of verification of
stock.

B. VERIFICATION OF WIP INVENTORY :

As requested by the WIP Incharge – we did the verification of inventory as follows :

Start Date : 2nd March 2023 End Date : 3rd March 2023

Summary of Stock as on 28th February 2023.

Sr.No. Material Category Value Rs. Of Which Value of Non

Moving Rs
1. Packaging 9,48,496 -
2. Packaging in Printing 54,70,216 25,51,572
3. WIP Commercial Printing 25,08,695 6,51,959
4. Material in Production 16,23,747 -
a. Conventional & UV Inks 2,35,810 -
b. Chemicals & Coating 1,35,810 -
c. Liner Material 2,99,190 -
d. Window Patching Film 39,840 -
e. Lamination Material 1,47,806 -
f. Corrugation Material 7,65,291 -
5. Packaging Labour Cost 3,91,938 -
Total 1,09,43,092 32,03,531
Non-Moving % 29.27%
 a. What is considered as Non-Moving ?:
Item that have not moved at all / not dispatched at all during the
Period from 1st October 2022 to 28th February 2022 are considered as
Non-Moving.

b. Non – Moving items includes various types of packaging material

& finished goods etc. which are of not dispatch or no use after a
period of time.

c. Please find attachment here with item wise details of Non-Moving under each
category as stated above ( Annexure A & B )

C. OTHER OBSERVATION AND REMARKS – REGARDING INVENTORY VERIFICATION :

a. Changes in packaging / Design / Wording :

During our verification we found that many cases were changes in packaging, Design
and Wording of product but items not dispatch to customer. Items still lying in stock.

b. Wastage Material :
The process of considering wastage material needs to be looked into. it was found
that the wastage material issue beyond the allocated limit. During our verification
the concerned person was not able to give exact details of issuing of extra wastage
material.

c. Scrap Material :
During verification it was found that many finished goods items in stock since March
2021 and not in good condition.

d. Tagging Issue :
Tags were not put on many stock items of Finished goods.

e. Wrong Tagging :
wrong tag was put on the stock of Finished goods.

f. Short Stock found :

Stock of Finished Goods was found short.
INVENTORY AUDIT REPORT
WIKAS PRINTING AND CARRIERS PVT. LTD.

PART–B : DETAILED REPORT

1. Example of cases where there are changes in Packaging / Design / Wording :

Date Party name Quantity WIP Observation

Job order Product Value
03.11.2021 Parag Milk 7,000 26,460 This should have been
J003422 communicated with the
Go Cheese Process customer immediately.
Angles
23.03.2022 Parag Milk 6,000 23,220 Inventory should have been
1890 sent to Customer.
Go Cheese Process
Square 200GM
16.11.2021 Parag Milk 10,600 19,080
J003483
Table Butter 500 GM
14.03.2022 Klass Pack 300 4,860
1807
Borosil Klass Pack Gift
Box
15.03.2022 Meril 3,000 8,667
1813
Filaprop
Polypropylene – Old
Material
10.05.2022 Meril 2,600 8,190
2809
Aspiron Polyglactin
910

2. Examples of cases where extra sheets were provided beyond wastage allocated limit .
 ( Wastage Limit – 5% )

Date Party name Quantity Sheets Wastage Wastage WIP

Job order Product ( Units ) Required Allowed Allocated Value
(5% ) ( Rs. )
08.12.2021 P.R. Sales 2,000 834 42 500 8,478
876
D-Touch
Hand Gloves
15.12.2021 East Sun 2,800 850 43 500 3,879
984 Electronics
India LLP

Gionee
Powerbank
23.11.2021 Sri Sri 4,700 840 42 500 13,113
J003523 Enterprises

Asian 9W
Led Light
Carton
24.12.2021 Zydus 4,600 1,080 55 504 4,885
1108
Monotax XP
500MG
15.07.2022 Raymond 5,400 3,889 195 805 13,608
KC983
KS 10S
Skinfeel
06.01.2022 Radhika 6,200 5,000 250 600 13,392
JC1248 OPto

5W
Goldmedal
LED Bulb
06.01.2022 Radhika 6,100 5,000 250 600 13,176
JC1247 OPto

5W
Goldmedal
LED Bulb
3. Example of cases where items not in use or not dispatch or move to scrap.
 Date Party name Quantity WIP Observation
Job order Product Value
14.12.2021 East Sun 1,300 5042 These are item lying in stock
971 since March 2022.
Syska Power Bank
P1037B Suggested that it should be
15.12.2021 East Sun 2,800 10,861 move to scrap or Write off.
984
Gionee Thunder
109 Power Bank
23.12.2020 Weikfield 1,200 2,624
2332
Weikfeild Jelly
Mango
16.12.2021 East Sun 1,500 5,818
994
Syska Charger
PD20WI White

 Major Party - MERIL

Product Name Quantity WIP Value Observation

Mericron XL 1,500 6,412 These are item
Aspiron 2,600 6,435 lying in stock
Polyglactin 910 since March 2022.
– FBB
Mitsu 2,000 4,950 Suggested that it
Antibacterial should be moved
Red – FBB to scrap.
Filamide 1,400 5,985
Polyamide –
FBB
Mitsu C+ - FBB 5,300 22657
Filasilk Silk 1,800 5,200
Black – FBB
Merizelle 2,700 11,542
Standard – FBB
Skin Stapler 1,200 12,722
Merisofy Plain 1,700 5,355
4. Example of cases where tags not put on stock :

Job order Party name Quantity WIP Value

Product
1607 Dagdu Teli 4,000 7,560

Sugandhi Utne 40G

East Sun

994 Syska Charger 1,500 5.818

PD20WI White

971 Syska Power Bank 1,300 1,300

P1037B – Black

Syska Power Bank 1,400 1,400

P1037B - Blue

5. Wrong Tagging :

During verification it was observed that wrong tag was put on the stock of Finished
Goods :

Job order Party name Quantity WIP Value

Product
 KC/FY22- Nikam Education 3,010 1,12,875
23/1540 ( OPC ) Pvt. Ltd.

Ticket to Civil Service

Book

6. Short Stock found :

During verification of stock – following stock of Finished Goods was found short :

Party name Quantity as per Quantity Difference

Product sheet found during short quantity
verification
Pravin 6,00,000 5,96,250 3,750
Masale

Pavbhaji
Masala
East Sun 1,500 1,000 500

Portronics
gift box
White 10 k
Meril 1,300 1,000 300

Aspiron Silk
Black
Aco 1,400 1,200 200
Perfumes

Perfumes de
violleta
DISCLAIMER : This Internal Audit Report is for Internal use of Company only.

Test Checks have been applied wherever found necessary. Speciffic areas / functions of
the company have been covered from time to time. Further this report should not be
used for forming any opinion what–so-ever or an opinion on accounts / financial
position of the company. Our firm shall not be responsible for its use to form opinion /
judgement / conclusion.

Anand S. Daga
Place: Partner
Daga & Chaturmutha
Date : Chartered Accountants